credit card
Is your Personal Loan or Credit Card application getting rejected again and again? You should find out the reason behind this. If you do not do this then you will continue to be troubled but the application will not be accepted. We are telling you the reasons due to which your application may be rejected. If you get it right then banks will easily issue you a loan or credit card.
1. Bad credit score
When applying for a personal loan or credit card, banks first check your credit score. Most banks prefer to give personal loans or credit cards to people with a credit score above 750. A higher credit score means that the person has a good credit history and there is less risk in giving him a loan. Whereas giving personal loan to people with low credit score is considered more risky.
2. Applying for loan multiple times
If you repeatedly apply for Personal Loan or Credit Card in a short period of time, it has a negative impact on your credit score. Whenever you apply for a loan or credit card, banks ask for your credit report from the credit bureau. Whenever you get a hard-enquiry, your credit score drops a few points. These hard-enquiries are also reported on your credit report. Avoid making this mistake.
3. Payment estimation
Banks prefer to give loans to those people whose EMI is only 50% to 55% of their income. Make sure to evaluate it before applying for any loan. If the EMI burden is more than 50%-55% then the loan application may be rejected.
4. Changing jobs frequently
Where do you work, what is your job profile and for how long have you been working? Banks pay attention to all these things while evaluating the loan application. Banks want to see how stable your job record is. Therefore, avoid changing jobs frequently.
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